Core Insights - The article discusses the performance and strategic outlook of Illumina, emphasizing its leadership in the next-generation sequencing (NGS) market and the growth driven by clinical applications [3][4]. Financial Performance Analysis - In Q4 2025, revenue grew by 4% year-over-year at constant currency, with a 7% increase excluding the Chinese market [4]. - Earnings per share for Q4 2025 were projected between $1.27 and $1.30, with an annual EPS of approximately $4.76 to $4.79, reflecting over 15% growth [4]. - The company placed 95 units of the NovaSeq X series instruments in Q4 2025, with consumable sales driven by strong usage rates [4]. Key Growth Drivers - Revenue growth is primarily driven by the clinical market, with 60% of consumable revenue coming from clinical customers [6]. - Increased adoption of the NovaSeq X has doubled sequencing capabilities and boosted consumable demand [6]. - Customers are increasing sequencing intensity, necessitating a 15-fold volume growth for certain applications [6]. Business Operations Overview - The clinical market serves as the core growth engine, with strong demand in oncology, genetic diseases, and reproductive health [7]. - The academic research market shows signs of rebound but is expected to remain weak in 2026 [7]. Market Expansion - Global installed base exceeds 20,000 units, supporting a full lifecycle from early detection to routine clinical applications [8]. - The Chinese market faced sanctions but is gradually recovering post-sanction, with a current revenue contribution of 3% [8]. R&D Investments and Achievements - The launch of NovaSeq X enhances sequencing capabilities, with new technologies being integrated into existing platforms [9]. - Multi-omics products, including single-cell solutions and protein preparation systems, are being developed [9]. Operational Efficiency - The company has optimized end-to-end workflows, reducing total costs for customers by over 30% compared to alternatives [11]. - The NovaSeq X workflow has been simplified, improving laboratory efficiency [11]. Future Outlook and Plans - Short-term goals for 2026 include maintaining demand patterns from H2 2025 and focusing on clinical market growth [12]. - Long-term strategies involve expanding multi-omics capabilities and enhancing the Bio Insights business to drive digital drug discovery [13]. Q&A Highlights - Q4 performance exceeded expectations due to strong growth in markets outside China, with clinical market growth being a significant contributor [14]. - The transition to NovaSeq X is expected to have a reduced price impact in 2026 [15]. Market Health Status - The clinical market continues to grow, with 60% of consumable revenue derived from clinical applications [17]. - The academic research sector is anticipated to remain weak in 2026, but new technologies may drive long-term recovery [17]. Competitive Environment - Customers prioritize ecosystem and workflow integrity over price, with NovaSeq X offering advantages in flexibility and usability [18]. China Market Approval and Recovery - Post-sanction, instrument imports for OEM customers are allowed, with ongoing discussions to lift the "unreliable entity list" designation [19].

Group 1 - The core viewpoint of the article highlights Illumina's preliminary fourth-quarter performance, reporting revenue of $1.155 billion, a year-over-year increase of 5%, surpassing analyst expectations of $1 billion [1] - The adjusted earnings per share are projected to be between $1.27 and $1.30, also exceeding the anticipated $1.21 [1] - Illumina collaborates with pharmaceutical companies such as AstraZeneca, Merck, and Eli Lilly to launch the world's largest dataset of whole-genome genetic perturbation, aimed at accelerating AI-driven drug discovery [1]

Core Insights - The announcement by Inmena Company regarding the launch of the "Billion Cell Atlas" marks the first data product from its new business unit, BioInsight [1] - The atlas is part of a three-year initiative to create a "Fifty Billion Cell Atlas," with the initial output expected to generate single-cell transcriptome data at a rate of 20 PB per year [1] - The project is being developed in collaboration with a consortium that includes AstraZeneca, Merck & Co., and Eli Lilly, focusing on selected cell lines to enhance drug target validation, train advanced AI models, and explore previously inaccessible mechanisms of fundamental diseases [1]

Core Insights - Illumina's CEO Jacob Thaysen highlighted the company's growth opportunities in the China market during the JPMorgan Health-Care Conference [1] - The discussion also touched on the potential for Illumina to be acquired, indicating strategic considerations for the company's future [1] Group 1: Market Opportunities - The China market presents significant growth potential for Illumina, suggesting a focus on expanding its presence in this region [1] - The company is exploring various strategies to capitalize on the increasing demand for genomic sequencing in China [1] Group 2: Acquisition Possibilities - Thaysen mentioned the possibility of Illumina being acquired, which reflects the company's strategic positioning and interest from potential buyers [1] - This consideration may influence investor sentiment and market dynamics surrounding Illumina [1]

Core Insights - Illumina is experiencing a return to growth, with a focus on its fourth quarter 2025 results [3] - The company emphasizes its differentiated ecosystem and workflow, which positions it well for continued growth, particularly in clinical markets [3] - Strategic positioning and disciplined execution are highlighted as key factors for profitable growth moving forward [3] Company Overview - Illumina is the market leader in next-generation sequencing, offering highly innovative products and maintaining the largest and most diverse installed base in the industry [4] - The company serves an installed base of over 20,000 instruments globally, spanning clinical, research, and applied markets [4] - This extensive scale allows Illumina to reach across the entire lifecycle from early discovery to routine clinical use [4]

Summary of Illumina's Presentation at J.P. Morgan Healthcare Conference Company Overview - **Company**: Illumina - **Industry**: Next-generation sequencing (NGS) - **Market Position**: Market leader with over 20,000 instruments globally across clinical, research, and applied markets [3][4] Key Financial Highlights - **Q4 2025 Revenue Growth**: Grew 4% on a constant currency basis and 7% excluding China [4] - **Earnings Per Share (EPS)**: Q4 EPS ranged from $1.27 to $1.30, leading to a full-year EPS of approximately $4.76 to $4.79, representing over 15% growth [4][6] - **Clinical Market Contribution**: Clinical markets accounted for roughly 60% of consumables revenue, driving significant growth [12][33] Product and Market Dynamics - **NovaSeq X Series**: Launched in 2023, it doubled customers' sequencing capacity and accounted for approximately 80% of high-throughput gigabases shipped by year-end 2025 [3][5] - **Consumables Growth**: Achieved 20% consumables growth ex-China in Q4, driven by strong clinical utilization [6][26] - **Transition to NovaSeq X**: The transition is expected to continue, with clinical customers increasingly adopting larger panels and deeper sequencing [40][42] Strategic Initiatives - **BioInsights Launch**: Aimed at enhancing clinical interpretation and expanding data utilization in drug discovery [11][16] - **Multi-Omics Expansion**: New product offerings in multi-omics, including single-cell solutions and proteomics, are designed to scale research programs and improve insights [15][54] - **AI Integration**: Leveraging AI to enhance drug discovery and biological insights through large-scale data analysis [16][56] Market Outlook - **Clinical Market Growth**: Anticipated to remain a key growth driver, with expectations of continued demand for NGS tests in oncology, genetic diseases, and reproductive health [5][33] - **Research Market Sentiment**: While there is optimism for the clinical market, the academic research environment is expected to remain muted in the near term [33] Competitive Landscape - **Technological Advantages**: Illumina emphasizes the importance of providing comprehensive solutions beyond just hardware, focusing on workflow optimization and customer success [45][46] - **Resilience in Challenges**: Despite geopolitical challenges in 2025, Illumina demonstrated resilience and continued to grow its bottom line [32][33] Capital Allocation and Shareholder Returns - **Cash Flow Generation**: Approximately $1 billion per year in strong and durable cash flow, with a free cash flow conversion of about 140% [17] - **Share Repurchases**: Returned $740 million to shareholders via share repurchases in June 2025 [18] Conclusion - **Future Focus**: Illumina aims to continue innovation, execute with discipline, and deploy capital thoughtfully to drive long-term value creation and maximize shareholder value [18]

44th Annual J.P. Morgan Healthcare Conference Jacob Thaysen, PhD Chief Executive Officer January 13, 2026 © 2026 Illumina, Inc. All rights reserved. © 2026 Illumina, Inc. All rights reserved. Cautionary Notes On Forward Looking Statements This release may contain forward-looking statements that involve risks and uncertainties. Among the important factors to which our business is subject that could cause actual results to differ materially from those in any forward-looking statements are: J.P. Morgan Healthc ...

Core Insights - Illumina has launched a new dataset that maps genetic changes aimed at enhancing drug discovery through the use of artificial intelligence [1] Company Summary - The introduction of the dataset is expected to facilitate the acceleration of drug discovery processes [1]

Core Insights - Illumina has launched the world's largest genome-wide genetic perturbation dataset, the Illumina Billion Cell Atlas, aimed at accelerating drug discovery through AI across the pharmaceutical ecosystem [1][2] - The Atlas is part of a larger initiative to create a 5 billion cell atlas over three years, representing the most comprehensive map of human disease biology to date [1][11] Group 1: Collaboration and Partnerships - The Atlas is being developed in collaboration with founding partners AstraZeneca, Merck, and Eli Lilly, focusing on drug target validation and training advanced AI models [2][3] - Merck plans to utilize the Atlas to enhance precision medicine approaches in their drug discovery pipelines, leveraging AI/ML models to improve disease prediction [3][4] Group 2: Technological Advancements - The Atlas will capture responses of 1 billion individual cells to genetic changes via CRISPR across over 200 disease-relevant cell lines, including those related to immune disorders, cancer, and rare genetic diseases [5] - The Illumina Single Cell 3' RNA prep platform enables the capture of millions of individual cells in a single experiment, generating 20 petabytes of single-cell transcriptomic data annually [9] Group 3: Research and Development Impact - The Atlas will facilitate the characterization of drug and disease mechanisms, exploration of new indications, and validation of candidate targets from human genetics [6] - The initiative aims to translate genetic information into a clearer understanding of disease mechanisms, thereby enhancing drug development decisions [7] Group 4: Future Prospects - Illumina's BioInsight business is set to provide foundational technologies and datasets for the next generation of drug discovery and AI in pharmaceuticals [10] - The company is actively expanding multi-billion cell atlases over time, building on previous initiatives to create a comprehensive single-cell resource [11]

Revenue Performance - Revenue for Q4 2025 was approximately $1.155 billion, representing a 5% increase from Q4 2024 (4% on a constant currency basis) [7] - Ex-China revenue for Q4 2025 was approximately $1.100 billion, up 7% from Q4 2024 [7] - Full fiscal year 2025 revenue was approximately $4.34 billion, flat compared to 2024 [7] - Ex-China revenue for fiscal year 2025 was approximately $4.10 billion, up 2% from 2024 [7] - Constant currency revenue for Q4 2025, excluding hedge effects, was approximately $1.159 billion, a 5% increase from Q4 2024 [14] Earnings Per Share (EPS) - GAAP diluted EPS for Q4 2025 is projected to be between $2.14 and $2.17, while non-GAAP diluted EPS is expected to be between $1.27 and $1.30 [7] - GAAP diluted EPS for fiscal year 2025 is projected to be between $5.42 and $5.45, with non-GAAP diluted EPS expected between $4.76 and $4.79 [7] Business Acquisition and Integration - The company is in the process of acquiring SomaLogic, Inc., which may impact future financial results [9] - The company anticipates challenges in integrating the SomaLogic Business and managing partner relationships in the proteomics market [9] Forward-Looking Guidance - Forward-looking guidance is provided on a non-GAAP basis, with uncertainties regarding future financial measures due to various factors [8]